Business Customer Retention Strategies

The Postal Accountability and Enhancement Act of 2006 was enacted at a time when mail was a primary vehicle for advertising, correspondence, and business transactions. Since that time, consumer behavior and the marketing industry have significantly changed. Digital advertising, electronic bill pay, and email correspondence have impacted mail volume, resulting in a 40 and 24 percent decline in First-Class and Marketing Mail volume, respectively, since 2006. In fiscal year (FY) 2017, First-Class Mail volume declined by 2.5 billion pieces and Marketing Mail volume declined by 2.6 billion pieces, primarily due to digital diversion. Our objective was to assess the effectiveness of the U.S. Postal Service’s business customer retention strategies.